Quality Area 7: Governance and leadership

Last reviewed: 29 October 2026. Checked against the Education and Care Services National Regulations, reprint current as at 12 August 2026.

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Quick answer

Quality Area 7, Governance and leadership, has 2 standards (7.1 Governance, 7.2 Leadership) and 6 elements. The NQS describes it this way: “Effective leadership contributes to sustained quality relationships and environments that facilitate children’s learning and development. Well documented policies and practices that are developed and regularly evaluated in partnership with educators, co-ordinators, staff members and families contribute to the ethical management of a quality service that is child safe. There is a focus on continuous improvement.” Services are rated Working Towards, Meeting or Exceeding NQS against each standard, and the standard ratings determine the quality area rating.

Quality Area 7 is the quality area about the organisation itself: its philosophy, its systems for managing risk, who is responsible for what, how it improves, how the educational leader is supported and how staff are developed. The current reprint adds the words that is child safe to Standard 7.1 and Element 7.1.2, which makes child safe governance an explicit part of the standard. Nationally, Standard 7.2 is one of the most common Working Towards standards because the Quality Improvement Plan is treated as a document rather than a process.

Standards and elements of Quality Area 7

Wording reproduced from Schedule 1 of the Education and Care Services National Regulations, reprint current as at 12 August 2026.

Number	Concept	Standard / element
Standard 7.1	Governance	Governance supports the operation of a quality service that is child safe.
7.1.1	Service philosophy and purpose	A statement of philosophy guides all aspects of the service’s operations.
7.1.2	Management systems	Systems are in place to manage risk and enable the effective management and operation of a quality service that is child safe.
7.1.3	Roles and responsibilities	Roles and responsibilities are clearly defined and understood, and support effective decision-making and operation of the service.
Standard 7.2	Leadership	Effective leadership builds and promotes a positive organisational culture and professional learning community.
7.2.1	Continuous improvement	There is an effective self-assessment and quality improvement process in place.
7.2.2	Educational leadership	The educational leader is supported and leads the development and implementation of the educational program and assessment and planning cycle.
7.2.3	Development of professionals	Educators’, co-ordinators’ and staff members’ performance is regularly evaluated and individual plans are in place to support learning and development.

The regulations behind Quality Area 7

Regulations 55 and 56: the Quality Improvement Plan, prepared within 3 months of service approval, containing a self-assessment against the NQS and the Regulations, the areas identified for improvement and a statement of philosophy; reviewed and revised at least annually and whenever the regulatory authority directs; produced on request (Elements 7.1.1 and 7.2.1). See the QIP guide.
Regulation 118: the educational leader designated in writing (Element 7.2.2).
Regulations 117A to 117C: nominated supervisor minimum requirements, and section 162 of the Law, a responsible person present at all times (Element 7.1.3).
Regulations 168 to 172: the required policies and procedures, including governance and management of the service and confidentiality of records (168(2)(l)), staffing and the code of conduct (168(2)(i)), complaints (168(2)(o)); policies must be followed (r 170), accessible (r 171) and changes notified 14 days ahead (r 172). See the regulation 168 guide.
Regulations 145 to 154 and 177 to 184: staff records and the record-keeping, storage and confidentiality requirements (Element 7.1.2).
Regulations 173 to 176: prescribed information to be displayed and notifications to the regulatory authority, including serious incidents within 24 hours and changes to the nominated supervisor.
Sections 12 to 13 and 21 of the National Law: fit and proper person and the matters the regulatory authority considers about the people with management or control; and regulations 128B to 128E: the 2026 child protection and child safety training that the person with management or control and the nominated supervisor must also complete.

What the 2026 child-safe wording means in practice

Standard 7.1 now reads Governance supports the operation of a quality service that is child safe and Element 7.1.2 requires systems to manage risk and enable the operation of a quality service that is child safe. Assessors read that alongside the regulation 168(2)(h) child safe environment policy (which must promote a culture of child safety and wellbeing), the 168(2)(ha) digital technologies policy, the child-focused complaints system in 168(2)(o), and the training records under regulations 128B to 128E. Governance evidence now has to show how child safety risk is identified, escalated and acted on by the people with management or control, not just that a policy exists.

What assessors look for

The QIP as a living process: when each section was last reviewed, who contributed, what changed since the last version, and whether the self-assessment is honest (Element 7.2.1).
Whether the philosophy was developed with educators and families and whether it is recognisable in the rooms (Element 7.1.1).
Risk management systems: incident trend analysis, complaints register and outcomes, policy review schedule, record storage and confidentiality, business continuity, and now child safety risk (Element 7.1.2).
Roles and delegations: who is responsible person and when, what the educational leader’s role description and allocated time are, how decisions are made and communicated (Elements 7.1.3 and 7.2.2).
Performance and development: induction records, appraisals, individual professional development plans and evidence they are followed through (Element 7.2.3).

Where services most often get Working Towards in Quality Area 7

Element 7.2.1: a QIP dated once a year, written by the director, with improvement goals from the previous year still marked in progress and no record of review.
Element 7.1.2: no complaints register, incident records not analysed for patterns, policies past their review dates, or records accessible to people who should not see them.
Element 7.2.2: an educational leader named on the staff record but with no role description, no allocated time and no evidence of leading the planning cycle.
Element 7.2.3: appraisals not done, or done without individual learning plans; induction that consists of a signed policy acknowledgement.
Element 7.1.3: staff unable to say who the responsible person is, or governing body members unaware of their obligations under the Law.

What Exceeding looks like in Quality Area 7

Exceeding is judged standard by standard against the three themes. For this quality area the Guide to the NQF and the assessor evidence typically point to:

Embedded in practice: governance systems are used and understood by everyone; self-assessment and improvement run on a cycle through the year and every educator can point to their part in it.
Informed by critical reflection: leaders reflect on their own practice and the service’s culture, use data (incidents, complaints, attendance, family feedback) to question assumptions, and record the decisions that followed.
Shaped by engagement with families and community: families and community contribute to the philosophy, the QIP and policy review, and the service engages with the wider sector and its regulator proactively.

How the rating is worked out

Each element is assessed as Met or Not Met. A standard is rated Meeting NQS only when every element under it is met; one unmet element makes the standard Working Towards NQS. A standard can be rated Exceeding NQS when the service shows all three Exceeding themes for that standard: practice is embedded in service operations, practice is informed by critical reflection, and practice is shaped by meaningful engagement with families and/or the community. Standard ratings roll up to the quality area, and the quality area ratings roll up to the overall rating: one Working Towards quality area caps the overall rating at Working Towards. An overall Exceeding NQS rating needs at least four quality areas rated Exceeding, including at least two of Quality Areas 1, 5, 6 and 7. The rating levels themselves are prescribed by regulation 57.

Frequently asked questions

How many elements are in Quality Area 7?

Six, under two standards. Standard 7.1 Governance: 7.1.1 Service philosophy and purpose, 7.1.2 Management systems, 7.1.3 Roles and responsibilities. Standard 7.2 Leadership: 7.2.1 Continuous improvement, 7.2.2 Educational leadership, 7.2.3 Development of professionals.

What is quality area 7.2?

Standard 7.2 Leadership: effective leadership builds and promotes a positive organisational culture and professional learning community. Its elements are 7.2.1 Continuous improvement (the self-assessment and QIP process), 7.2.2 Educational leadership and 7.2.3 Development of professionals.

Is the QIP a legal requirement?

Yes. Regulation 55 requires a Quality Improvement Plan within 3 months of service approval containing a self-assessment against the NQS and the Regulations, identified improvement areas and the statement of philosophy. Regulation 56 requires review and revision at least annually. It must be produced to the regulatory authority on request.

What changed in Quality Area 7 in 2026?

The current reprint of Schedule 1 adds the words that is child safe to Standard 7.1 and to Element 7.1.2, and the Quality Area 7 introduction now refers to the ethical management of a quality service that is child safe. This aligns the standard with the 2025 and 2026 child safety amendments to the Law and Regulations.

Who is the educational leader and does the role need a qualification?

Regulation 118 requires the approved provider to designate in writing a suitably qualified and experienced educator, co-ordinator or other individual to lead the development and implementation of the educational program. The Regulations do not prescribe a particular qualification; the name must be in the staff record (regulation 148) and displayed (regulation 173).

Ask about any element of Quality Area 7

Type the element number or the situation in your room. WIDEN Law answers with the regulation, the NQS element and the Guide to the NQF passage it relied on, so you can check the source.

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This page is a research summary, not legal or compliance advice. Element and regulation wording is reproduced from the current reprint of the National Regulations; confirm the position with your regulatory authority before relying on it for a compliance decision.